Tuesday, March 24, 2015

Tencel in Lenzing Annual Reports 2014

During the 2014 reporting year, Lenzing successfully initiated production at its first TENCEL® jumbo production facility featuring a nominal capacity of 67,000 tons. For the first time, such large fiber volumes can be produced on a single production line. Conventional TENCEL® production lines are only one-quarter as large on average. Thanks to the new design of the jumbo production line, investment costs could be maintained at a very competitive level of approximately EUR 150 mn (or about EUR 2,200 per ton of capacity). 

The latest generation of TENCEL® technology incorporates the experience gained from the three existing TENCEL® production plants of the Lenzing Group located in Austria, USA and Great Britain. With a construction time of 24 months, Lenzing completely adhered to both the budgeted investment costs as well as all timetables. The TENCEL® fiber production secures 140 jobs at the Lenzing site. 

The successful start of the jumbo fiber production line serves as the basis for the further competitive scaling of TENCEL® fibers as a universally deployable textile and nonwoven fiber. The new, broader product portfolio on the basis of the TENCEL® technology successfully complements Lenzing’s specialty strategy. Expansion of global market leadership for lyocell The annual nominal TENCEL® production capacity of the Lenzing Group will rise from 155,000 tons to about 220,000 tons thanks to the new plant. In this way, Lenzing will further expand upon its worldwide leadership for lyocell and offer its global customers new expansion opportunities in both the textile and nonwoven segments as well as new and innovative applications. 

Typical applications of the high-tech fiber TENCEL® include sportswear, soft

Friday, March 20, 2015

New CEO at Lenzing

Vienna, March 20, 2015 – The Supervisory Board of Lenzing AG appointed Stefan Doboczky as the new Chairman of the Management Board (CEO) of Lenzing AG. Mr. Doboczky will assume his new function on June 1st 2015. He takes over from Peter Untersperger, who will step down from his function as CEO per 31 May 2015 at his own request prematurely.

Mr. Doboczky, Austrian, brings to Lenzing a broad international management experience and extensive expertise in Asia. Since 1998 he has worked in various management positions for the Dutch Life Science & Material Science group Royal DSM in Europe and Asia. In his current role as Member of the Managing Board he has been responsible for the successful strategic repositioning of the global pharmaceutical businesses, for Corporate Operations & Responsible Care, as well as for the corporation’s growth agenda in the Asian markets. Mr. Doboczky holds a PhD in chemistry from the TU Wien and a MBA from Swiss Business School IMD .

Hanno Bästlein, Chairman of the Nomination Committee of the Supervisory Board of Lenzing AG, said about the appointment of the new CEO: “With his international industrial expertise, his close to ten years of management experience in Asia and his strong technical background, Stefan Doboczky will strengthen the Management Board team and is ideally suited to lead the Lenzing Group towards further growth.”

Source: Lenzing

Monday, January 26, 2015

The Top 10 Countries as Pageviews pass 81,000

In the last 2 months the Ukraine has been the number 1 user of this website. 

It moves up into No. 2 position ahead of the UK for all-time usage (see below)

United States
United Kingdom

Friday, December 12, 2014

Jumbo Tencel plant doing well - 1997 projection was right (2014)

Proud of the successful half-year track record of the new TENCEL® fiber plant in Lenzing: TENCEL® Plant Manager Franz Bauhofer, Board Member Robert van de Kerkhof (CCO) and Head of TENCEL® Operations Andrew Ronchetti.

As of the end of 2014, total annual TENCEL® production capacity of the Lenzing Group amounts to about 220,000 tons manufactured at the Austrian sites in Lenzing and Heiligenkreuz, in Mobile, Alabama in the USA and in Grimsby, Great Britain. Thanks to the new “jumbo production line” at the Lenzing site, investment costs could be maintained at a very competitive level of approximately EUR 150 mn (or about EUR 2,200 per ton of capacity). This gives Lenzing the opportunity to achieve a further competitive scaling of TENCEL® fibers as a universally deployable textile and nonwoven fiber.  

(*Andy Ronchetti, then in Courtaulds Research, was present at Courtaulds Fibres 3rd Oct 97 Strategic Review of Tencel where the projected costs of a future jumbo Tencel plant were estimated to be $2500/AT by Dave Hignell and $3000/AT by Dave Watson.  Taking the mid-range $2750 figure, that just happens to be Lenzing's €2200/AT at today's exchange rates. Ed.)

Friday, November 28, 2014

More Layoffs at Lenzing (2014)

The Lenzing Group is resolutely and systematically counteracting the ongoing difficult market conditions in the global fiber industry on the basis of its cost optimization program as it reported on the occasion of publishing its business results for the first three quarters of 2014. The organizational optimization measures launched one year ago at all sites and in all business areas are having a positive impact. The results achieved up until now are encouraging but by far insufficient to offset the decline in viscose fiber selling prices on the international marketplace.

Lenzing continues to anticipate good volume demand for all man-made cellulose fibers. However, fiber selling prices on the global market are not expected to recover in upcoming quarters. This development is also attributable to the substantial decline in polyester fiber prices as a result of the massive oil price decrease, and the expected longer-lasting period of low or at least volatile cotton prices as a consequence of the surplus supply of Chinese cotton.

For these reasons, the Lenzing Group will not implement any major new projects at the Lenzing site or abroad in the foreseeable future which are designed to expand its viscose fiber production capacities. The investment volume of the company will be adjusted to reflect the current market situation and will be significantly reduced in the subsequent years. This should contribute to improving the supply situation on the international viscose fiber market, which the company would like to sustainably profit from in its role as one of the world’s largest producers.

Due to the successful completion of the new TENCEL® investment volume, technical planning and production capacities cannot be maintained at current levels, especially at the Lenzing site. This necessitates a reorganization of Lenzing’s internal engineering and maintenance business areas and its subsidiary Lenzing Technik GmbH. Organizational structures in these areas have to be adjusted to future requirements. All in all, the restructuring measures will impact up to 250 jobs (including one-third temporary staff), mainly at the Lenzing site. The distribution of the job cuts among the various sites will be determined fiber plant in Lenzing and the reduced by the beginning of 2015 within the context of a project which is already under way. In this connection, Lenzing will try to avoid layoffs and strive to reach a mutually acceptable solution with the affected employees as it succeeded in doing within the context of the first cost optimization program.

During initial talks on this issue held with the Lenzing Works Council, Lenzing agreed to extend the current redundancy program (social plan) and to offer the possibility for employees newly affected by the downsizing to transfer to the Lenzing Labor Foundation.

At the same time, Lenzing is working on a strategic reorientation of its subsidiary Lenzing Technik GmbH to enable it to focus more strongly on the external market in the future.

For more information please contact:
Angelika Guldt Stephanie Kniep
Head of Corporate Communications Head of Investor Relations
Phone: +43 (0) 7672 701-2713 Phone: +43 (0) 7672 701-4032
E-mail: a.guldt@lenzing.com E-mail: s.kniep@lenzing.com